Midjourney Acquires Astrology App Co-Star in Strategic Consumer Push
The bootstrapped AI image lab buys Co-Star's team and taps founder Banu Güler as Chief Design Officer.
Midjourney, the bootstrapped AI image generation company, has acquired Co-Star, the astrology app known for its minimalist design and NASA data-driven horoscopes. The deal, first reported by Bloomberg, marks a significant expansion for the profitable lab as it moves beyond its Discord-based subscription service.
Team Acquisition Over Product Purchase
The acquisition centers on talent rather than technology. Co-Star's team of approximately two dozen employees has joined Midjourney, bringing consumer app expertise to a company that has operated without venture capital backing. Co-Star founder Banu Güler has become Midjourney's Chief Design Officer, according to The Verge.
Financial terms were not disclosed. Reports indicate the deal closed in spring 2026, though the exact date remains unconfirmed.
Midjourney's Financial Position
Midjourney enters the acquisition from a position of strength. The company is reportedly profitable with approximately $500 million in annual revenue as of 2025, a notable achievement for a bootstrapped AI startup that avoided the venture funding race that consumed competitors like Stability AI and Runway.
The company grew primarily through Discord, where users access its image generation tools via bot commands. This distribution strategy kept overhead low but left Midjourney dependent on a third-party platform for user access.
Co-Star's Reach
Co-Star brought substantial audience scale to the deal. The astrology app has over 30 million registered users, with approximately 4.3 million monthly active users. The app gained traction for its "brutally honest" AI-generated horoscopes and distinctive black-and-white aesthetic.
Strategic Implications
The acquisition signals Midjourney's intent to build a broader consumer app ecosystem. By absorbing a team experienced in shipping successful standalone mobile applications, Midjourney appears positioned to launch its own native app, reducing reliance on Discord as its primary distribution channel.
This move follows a pattern of AI infrastructure companies expanding into consumer-facing products. Midjourney's profitability and bootstrapped status give it unusual flexibility to pursue acquisitions without investor pressure for immediate returns.
Güler's appointment as Chief Design Officer suggests Midjourney intends to apply Co-Star's design sensibility to its own product evolution. The hire brings consumer mobile expertise that complements Midjourney's core AI research capabilities.
The deal underscores how AI companies are competing for talent and consumer attention beyond their original verticals, with image generation leaders now eyeing broader lifestyle and entertainment categories.